TMI Blog2024 (5) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts and offered to tax, adding the same again would amount to double taxation which is impermissible in law. The cash sales proceeds have been credited in the books of accounts and the same form part of assessee s cash book. On these facts, it could very well be said that the assessee s claim was backed up by sufficient documentary evidences. The allegation of AO is that such abnormal sales could not be achieved by the assessee immediately upon announcement of demonetization by the Government. However, such allegations are bereft of any concrete evidence on record. It is trite law that no addition could be made merely on the basis of suspicion, conjectures and surmises. In the present case, the assessee has duly discharged the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 29.09.2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 30.12.2019. The grounds raised by the assessee read as under: - 1. The order passed by the National Faceless Appeal Centre (NFAC) is erroneous in law and opposed to facts and circumstances of the case. 2. The National Faceless Appeal Centre (NFAC) erred in sustaining addition of Rs. 1,85,00,000/- under section 69A of the Income Tax Act. 3. The National Faceless Appeal Centre (NFAC) ought t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on under section 69A on cash sales made by the appellant, due to reasons that the appellant had not provided Identity proof of the customers to whom cash sales was made. The National Faceless Appeal Centre (NFAC) failed to see that as per rule 114B of the Income Tax Act it is mandatory for the appellant to obtain identity proof only if the cash sales of each transaction Rs. 2 lakhs and in the instant case none of the transactions have crossed Rs. 2 lakhs. 8. The National Faceless Appeal Centre (NFAC) erred in sustaining the disallowance of Rs. 9,06,599/- made by the assessing officer by invoking section 37 of the Income Tax Act. The said disallowance is wrong both on law and on facts. As is evident two issues fall for our consideration i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax / VAT on 08.11.2016 to accommodate cash deposit of Rs. 159.50 Lacs on 11.12.2016. The detail of such sales has been extracted in the assessment order. 3.3 However, Ld. AO rejected the claim of the assessee and held that there were no cash sales since the assessee failed to disclose the identity of the persons to whom cash sales were made on 08.11.2016. The assessee submitted that due to announcement of demonetization by Government of India, there was huge demand for investment in gold and due to rush, the assessee failed to collect the identity of the person to whom sales were made on 08.11.2016. However, not convinced, Ld. AO held that the aforesaid amount of Rs. 185 Lacs was unexplained money u/s 69A and assessable to tax at spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notes. The assessee made cash sales in 82 bills and many bills were signed by the buyers. Since each of the bill was for less than Rs. 2 Lacs, there was no requirement to obtain the name, address or PAN of the buyer. The assessee also submitted that the assessee had sufficient stock to make the sales and stock register was also submitted to Ld. AO. The purchases were evidenced by purchase bills and the stock was sold and all the sales were duly reported in VAT returns. However, Ld. CIT(A) chose to confirm the additions. 4.2 On the issue of interest disallowance, it was submitted that the loan was given in March, 2017 only and the assessee had sufficient credit balance in her capital account to extend interest-free loan to her son. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales in the relevant VAT returns which has apparently been accepted by VAT authorities. The assessee has maintained proper books of accounts which are subjected to Tax Audit u/s 44AB. The assessee also maintained quantitative details of traded stock. No single defect has been pointed out by lower authorities in the books of the assessee. 6. We are of the considered opinion that when the sale has been reflected in the books of accounts and offered to tax, adding the same again would amount to double taxation which is impermissible in law. The cash sales proceeds have been credited in the books of accounts and the same form part of assessee s cash book. On these facts, it could very well be said that the assessee s claim was backed up by suf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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